MicroStrategy Misses on Both Revenue and Earnings
MicroStrategy (NAS: MSTR) reported earnings on Oct. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MicroStrategy missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped.
Gross margins dropped, operating margins grew, net margins shrank.
MicroStrategy tallied revenue of $143.2 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $149.5 million on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $141.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The eight earnings estimates compiled by S&P Capital IQ predicted $0.84 per share. GAAP EPS of $0.43 for Q3 were 2.3% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.8%, 30 basis points worse than the prior-year quarter. Operating margin was 4.7%, 360 basis points better than the prior-year quarter. Net margin was 3.3%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $170.9 million. On the bottom line, the average EPS estimate is $1.55.
Next year's average estimate for revenue is $607.3 million. The average EPS estimate is $3.07.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 187 members out of 219 rating the stock outperform, and 32 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give MicroStrategy a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MicroStrategy is hold, with an average price target of $130.00.
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The article MicroStrategy Misses on Both Revenue and Earnings originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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